BPO Problems With Lenders Will Continue
Kevin and Fred, the leaders of Group 46:10, Arizona’s foremost small sale team, are chatting today about pricing and listing. Before you shut the video off since you by now know how to list and price, hear them out. Depending on your market, you may not be experiencing the akin stuff as Kevin and Fred are in Fountain hills. As many of you know, the deadline for taking benefit of the tax credit has passed. What we are seeing right now in the market is a slight bit less enthusiasm from home buyers and house owners. The supply is starting to boost and that ordinarily leads to prices going down. When you see that trend, you tend to have more disagreements with banks concerning the value of properties.
There are a lot of of the akin challenges in 2010 that we had in 2008. Lenders like to look at sold comparisons. Yet, if you want to deal with the variability in the market you need to compare values with active and pending listings. Price physically in advance of the market if you want to sell the house.
Presently, the BPO’s are coming back higher than what they should be in Kevin and Fred’s opinions. There have been discussions with Chase bank where they have raised the BPO price because they disagree with the BPO agent’s number.
It is vital to recognize that there will be more BPO tribulations in 2010. Other pieces of the nation may not encounter these tribulations if your market has only depreciated 10-15%. Nonetheless, in the Phoenix real estate market, with depreciation levels approaching 60-70% in some instances, there will be BPO issues.
The lender will probably make some mistakes and shut out on some properties. Don’t be shocked if it takes them a while to fix their own practices through this change in the market.
Get powered up by Kevin and Fred at Small Sale Power Hour by the Small Sale Specialists of Arizona